Japan
Latvia
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Latvia: Employee in Riga, Latvian tax resident and national, below pensionable age, single with no dependants, salary only paid evenly as monthly pay (no bonus), calendar tax year 2026, the employee's tax book (algas nodokļa grāmatiņa) filed with this employer. Personal income tax at 25.5% on annual taxable income up to the social-insurance maximum (€105,300) and 33% above, after deducting the employee's social insurance contributions and the €550 monthly non-taxable minimum; a 3% additional rate on income over €200,000. State social insurance (VSAOI) at the standard rates for an employee insured for all risks; above €105,300 contributions continue as solidarity tax.
At three salary levels
| Salary (US$ equivalent) | Japan | Latvia |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.24× Keeps 70% €53,605 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.23× Keeps 68% €107,210 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.19× Keeps 64% €223,354 |
Employment rules compared
| Japan | Latvia | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 4 calendar weeks |
| Public holidays in 2026 | 18 | 15 (Riga) |
| Notice of dismissal | 30 days, or pay in lieu | 10 days-1 month by ground (employer); 1 month (employee) |
| Severance required by law | None | 1-4 months' pay by service (no-fault dismissal) |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Up to 3 months |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 40 h/week; 8 h/day |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: statutory grounds only |
| Women in management (ILO) | 14.5% (2023) | 44% (2024) |
Questions
What does a US$120,000 salary cost an employer in Japan and Latvia?
With the rates and exchange rates as of October 2026, in Japan (Tokyo, ¥18,816,403) the employer’s total cost is 1.10 times the salary; in Latvia (€107,210) it is 1.23 times. The employee keeps 66% of salary in Japan and 68% in Latvia.
Is it cheaper to employ someone in Japan or Latvia?
At this salary, the employer’s on-cost is lower in Japan. The ratio changes with pay, though: where contributions are capped, the on-cost falls as a share of salary for high earners. Enter the real salary in the calculator above to compare.
How do notice and severance compare?
Japan: 30 days, or pay in lieu; no severance is required by law, and negotiated exits are commonly 3–6 months’ pay plus unused leave. Latvia: notice is 10 days-1 month by ground (employer); 1 month (employee); severance required by law: 1-4 months' pay by service (no-fault dismissal); typical negotiated exit: no official benchmark.
Which has more paid leave and public holidays?
Japan: 10 days after six months, rising to 20; 5 days must be taken, and 18 public holidays in 2026. Latvia: 4 calendar weeks, and 15 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Latvia: every rate and rule is listed with its primary source on Latvia's HR data. Exchange rates: ECB reference rates (2026-10-23); for currencies the ECB does not quote, the central bank's rate.
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